US Deparetment of Justice Probe Targets Major Banks Worldwide in Case Against Internet Gaming

by Lou on January 23, 2007

At least sixteen of the world’s biggest investment banks have been ordered by the US Department of Justice (USDOJ), accountants and law firms to hand over all records concerning internet gaming firms as part of an investigation into illegal online gambling in America.

Credit Suisse, Deutsche Bank HSBC, and Dresdner Kleinwort are among the banks caught up in the dredging net. This is all part of the USDOJ’s effort to build a case against online gaming.

These subpoenas were issued back in October, right after enactment of the Unlawful Internet Gaming Enforcement Act (UIGEA), but the investigation was under wraps until now.

The investigation, which has been described as one of the biggest fishing expeditions ever undertaken by USDOJ, could force banks and other advisers to online gaming companies to hand over hundreds of thousands of e-mails and files.

The USDOJ probe is sparking outrage in Britain, particularly when the subpoenas do not reveal whom the Department of Justice is targeting. Some believe the ultimate goal is to find information incriminating the founders of the online gambling firms. Others say it is an effort to create a huge chilling effect that will kill off online gaming and Internet poker. Most observers believe both are true.

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